Using RRSP Tax Credits to pay Property Tax

[Civuck]

Hi there,

We are newbie home-owners who are trying to "learn the ropes" so to speak of home accounting. We have a question perhaps someone could help us out with:

Rather than pay our property taxes monthly, does it make more sense to increase our monthly RRSP contributions and then use the resulting larger tax refund to pay the property taxes on a yearly basis?

Any comments would be appreciated...

C.

[gman]

Hi there,

We are newbie home-owners who are trying to "learn the ropes" so to speak of home accounting. We have a question perhaps someone could help us out with:

Rather than pay our property taxes monthly, does it make more sense to increase our monthly RRSP contributions and then use the resulting larger tax refund to pay the property taxes on a yearly basis?

Any comments would be appreciated...

C.

You cannot pay your property taxes on yearly basis unless you want to pay way before the dead line such as 1 year before the dead line. Even if for whatever reason you want to pre-pay, you still will not know about the exact amount until 2nd half of the year.

[ricoboxing]

you could also pay it together with your mortgage payments for convenience, but that convenience cost is the bank gets to borrow your $$ for free.